What is Foreign Portfolio Investment (FPI)? Foreign Portfolio Investment (FPI) involves investing in securities and financial assets in another country than a home country. The securities include stocks or American Depository Receipts (ADR) of companies in an overseas country. Also,...

What are InvITs? InvITs or infrastructure investment trusts are collective investment vehicles similar to mutual funds. They pool money from individual and institutional investors and invest in infrastructure projects or assets such as roads, power plants, and pipelines. The investors...

What is Trading? Trading is a short-term process that involves buying and selling stocks, commodities, currencies, derivatives or other financial instruments. The primary objective is to make profits from the short-term movement in prices of these securities. Hence, traders take...

What is an Equal Weight Index? An equal-weight index is a stock market index that gives the same weightage to all stocks that are included in it. In other words, each stock in the index is given the same importance...

What is Treynor Ratio in Mutual Funds?  The Treynor ratio is an essential ratio for evaluating mutual funds. It measures the excess return over the risk-free return to the market risk that an investment portfolio can earn. In other words,...

What is Sortino Ratio in Mutual Funds?  The Sortino ratio in mutual funds is a statistical tool that is useful to measure the performance of the fund with respect to the downward deviation. In other words, this ratio is used...

What is Options Trading? Options are contracts that give the buyer the right, but not the obligation, to buy or sell the underlying asset at a specific price on a specific date. They are called derivatives because they derive their...

What is the 50/30/20 Rule of Budgeting?  The 50/30/20 rule of budgeting is a simple method that helps you manage your money more effectively. This basic thumb rule is to divide your post-tax income into three spending categories - 50%...